U.S. Government Transfers Seized Bitcoin Amid Rising Sell-off Fears
Summary:
The U.S. government has transferred 3,940 Bitcoin obtained from convicted drug trafficker Banmeet Singh to a Coinbase Prime wallet. Investor concerns increase as the German government and Mt. Gox commence their Bitcoin sell-offs. However, low exchange balances are acting as a counterbalance to these sell pressures. Currently, the U.S. government, with approximately 214,000 Bitcoin, is the world's largest state Bitcoin holder.
On June 26, 2024, Arkham Intelligence's blockchain data revealed that the U.S. government transferred 3,940 Bitcoin into a prime Coinbase wallet. The Bitcoin, which came from drug dealer Banmeet Singh who was convicted earlier this year, was sent via a transaction that occurred at 17:00:41 UTC. Sources: Arkham Intelligence.
The Banmeet Singh Case: In 2019, British law enforcement in London apprehended Singh on charges of drug distribution. In 2023, he was extradited to the U.S. The U.S. Department of Justice claimed that, from 2012 to 2017, Singh operated a drug trafficking network spanning multiple states, including Maryland, New York, North Dakota, Washington, Ohio, North Carolina, and Florida.
Related: Bitcoin sees a four-week correction as Mt. Gox and the German government increase selling pressure.
Singh was mandated to hand over more than 8,100 Bitcoin, which at the time was valued at approximately $150 million, after his conviction. Regarded as the DEA's biggest ever cryptocurrency seizure, Singh was also given a five-year prison sentence in April 2024. Thanks to credit given for time already spent in custody, Singh has reportedly been freed by U.S. authorities and planned to return to India, his country of birth, immediately after his release, as reported by The Columbus Dispatch.
Fears of a government-led Bitcoin market sell-off are currently affecting investors, particularly after Germany's recent offloading of its $2.76 billion worth of Bitcoin. The last of these transactions was done on June 26, 2024, at 09:27:57 UTC where 345 Bitcoin was transferred to the "Flow Traders" wallet.
The U.S. government also possesses a significant number of Bitcoin as a result of seizures and forfeitures. According to Arkham's data, approximately 214,000 Bitcoin worth about $13 billion is owned by the U.S. government, making them the world's largest state holder of Bitcoin.
The selling pressure from the Mt. Gox bankruptcy estate also fuels the fear of a fall in Bitcoin price as the former exchange initiates the sale of 140,000 Bitcoin to indemnify those affected by the 2014 Mt. Gox collapse. However, low exchange balances, the lowest in 6 years, act as a stabilizing force against these sell-offs.
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Published At
6/26/2024 11:00:00 PM
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